Car Insurance City

Car Insurance City provides independant advice to assist you in finding the right car insurance for your needs. We do not sell car insurance directly but may advertise 3rd party car insurance companies.

Types of Car Insurance Cover

Third Party car insurance a legal requirement in the UK. It covers loss or damage to other people and property. Third Party car insurance doesn't cover any losses you might incur.

If your car is only worth a few hundred pounds, Third Party car insurance may be the most sensible option as other forms of insurance may cost more than the car is worth. However, your should consider additional cover such as Fire and Theft or Legal Defence cover to strengthen the Third Party policy.

In law, you are the First Party, your insurance company is referred to as the Second Party and any person with whom (or thing with which) you have an accident is called the Third Party. Therefore if you are involved in an accident with another vehicle they are the Third Party. If you damage a wall which belongs to a local business then the owner of the wall (the business) would be the Third Party.

If you choose to have Third Party Fire and Theft Insurance, you will be covered for damage to property belonging to and personal injury of Third Parties as well as Fire and Theft cover for your own car. With Third Party Only car insurance there is no cover at all for your vehicle.

Fully Comprehensive car insurance provides additional cover to that offered with Third Party Fire and Theft car insurance. The most important differences are that damage to your car is insured (subject to any excess that may apply), windscreen cover is also automatically included, personal accident cover for your passengers and yourself is included and stereo/audio equipment is covered as well as your personal effects.

Your new car may be bought using a credit agreement or loan. In this case you'd be advised to purchase Fully Comprehensive car insurance. There are many stories about people who have to carry on with payments on a car which was written off or stolen long ago.

This covers you for daily journeys in your car which are not related to any form of business use. If you travel to work in your car you must have Social Domestic and Pleasure including to and from a permanent place of work included in your policy

If you were to make a claim against your insurance policy (it doesn't matter who was to blame) then your entitlement to a no claims discount (NCD) would be reduced at the next renewal date according to the scalein your insurance policy. For example if you were entitled to a maximum NCD and you made a claim the reduction in discount might be from 65% to 40% and it would take a couple of years without any further claims to regain the 65% maximum No Claims Discount.

By paying an additional premium you are able to 'protect' your entitlement to a maximum No Claim Discount if you were to have a claim. But if you had more than two claims then the protection would be lost.

The car insurance excess is the amount that you would have to contribute towards the cost of any claim under the car insurance policy. This may be either compulsory or voluntary.

A compulsory excess is one that is a condition of the car insurance policy, for example your windscreen and windows cover may have an excess of £40, so, if your windscreen is broken then the insurance company will pay for a new windscreen but you would have to contribute £40 to the cost.

For some types of car, especially high value or sports cars, there is usually a compulsory excess in respect of accident damage. For young or inexperienced drivers there is often a compulsory excess applied.

A voluntary excess is an excess that you agree to in return for a reduction in your car insurance premium. Any voluntary excess operates in addition to any compulsory excess. It can be a good idea to take an excess not only because it lowers your premium but also because it may not be sensible to make a claim against your insurance company if the amount was small as you would lose some or all of your no claims discount.

The Uninsured Loss Recovery option works to seek recompense for the expenses you have had to pay, the excess, a hire car, perhaps loss of earnings and any personal injury claims. This saves you the effort of seeking redress from the third party directly

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